Govt makes significant reforms in energy sector: Minister Pun

Kathmandu, Mar 29: Minister for Energy, Water Resources and Irrigation Barshaman Pun 'Ananta' said that the government had been devising various mechanisms to manage the risks and problems perceived and problems faced by the energy-sector players.

"Over the past couple of years, we have accelerated the pace of reforms in the sector. We have successfully unbundled the sole public utility in the sector and created Generation Company and Transmission Grid Company. Seven distribution companies are now being planned in the provinces," he said while addressing a plenary at the Nepal Investment Summit 2019 that started on Friday here.

He said that, over the past couple of years, the government had accelerated the pace of reforms in the energy-sector.

"Legal instruments are already in place for the formation of a regulator in the sector, and the Electricity Regulation Commission will become functional very soon," said Minister Pun.

In the next five years, the ministry intends to provide access to every household in the country through a mix of grid and off-grid systems. It also aims at generating 10,000 megawatt electricity for domestic consumption along, with another five thousand megawatt for cross-border trading.

"These targets can only be met with the involvement of and investments from the private sector, a good part of that is expected to be of foreign origin," said Minister Pun.

He also said that the government was interested on promoting the Public-Private Partnership model in various forms, and has announced 'People's Hydropower Programme' to develop significant number of projects with a modality that ensures public participation.

"As we are offering attractive power purchase rates for peaking power, proponents willing to invest in peaking run-of-river or reservoir projects must find good prospect for return on their investments," he said.

Executive Chairman of Hydro Solutions Gyanendra Lal Pradhan said that Nepal is a country with lots of potential untapped.

"We are trying to find the replacement of petroleum oil and gas, the domestic market is growing, agreements have been signed for the cross-border energy exchange, Bangladesh wants to buy about 9,000 mw from Nepal and idea of energy banking is being materialised by 2020. All these progresses create a sound market for energy investments in Nepal," he said.

Secretary of Central Electricity Regulatory Commission (CERC) India Sanoj Kumar Jha said that the growing demand of electricity in India has created prospects for energy development in Nepal.

General Manager of Power China Song Dongsheng said that China was ready to export its capacity and technology to Nepal to support the latter in energy-sector development.

"We want to support Nepal with this supply-side capacity," he said.

Member of National Planning Commission Dr. Krishna Prasad Oli said that the government had come up with 25 years strategy in electricity development.

Executive Director of the Nepal Electricity Authority Kulman Ghishing said that the power sector regulator would play its role as a facilitator of investment in energy projects.

Senior Divisional Engineer at the Ministry Sagar Raj Gautam said that the government would offer any model favourable for the investors in hydropower development.

Increasing job opportunities: Minister Yadav

Minister for Industry Commerce and Supply Matrika Prasad Yadav said that the government aimed at increasing job opportunities through industrial development.

"The government is ready to protect the intellectual property and trademarks. We want to be a part of the global market," he said.

He said that the country needed the Foreign Direct Investment (FDI) to meet the economic, social and industrial growth target.

Minister Yadav assured the foreign and domestic investors that he and the Ministry would be available to them to facilitate them in their investment and business initiatives.

Vice-President of the Federation of Nepalese Chambers of Commerce and Industries Shekhar Golchha said that the government has made significant policy reforms but challenges are still there for their implementation.

"One of the major challenges is transport infrastructure. But, its an opportunity as well," he said.

Vice-President of Huaxin Cement Xu Gang said that the money and technical knowhow brought in by the foreign investors can help to enhance the capacity of the country.

Secretary of the Ministry of Industry, Commerce and Supplies Yam Kumari Khatiwada had presented a paper on the investment prospects in the industrial sector in Nepal. She said that the one-door system, newly announced incentives such as concession in income tax, customs duty and Value Added Tax, and facilities at the Special Economic Zones would have positive impact on the domestic as well as foreign investors.

Managing Director of Surya Nepal Abhimanyu Poddar urged the foreign investors to have patience since the Nepali market was profitable in the long term.

Likewise, Managing Director of the Panchakanya Group Pradeep Kumar Shrestha appreciated the recent efforts of the government in creating favourable investment climate and ease the doing business.  

Published in The Rising Nepal daily on 30 March 2019.